🚗Car Loan Calculator

About this tool

Enter the car's price, your deposit, any trade-in value and what you still owe on it, the sales tax rate, dealer and registration fees, the APR and the term in months. The calculator shows the monthly payment, the amount you'd borrow including tax, the total interest and the total cost of the car, plus a table comparing 36, 48, 60, 72 and 84-month terms.

How car loan payments are calculated

A car loan is an amortising loan: each fixed monthly payment covers that month's interest and repays part of the balance. The payment is P × r ÷ (1 − (1 + r)^−n), where P is the amount financed, r the monthly interest rate (APR ÷ 12) and n the number of months. The amount financed is the price plus sales tax and fees, minus your deposit and trade-in, plus any negative equity, the amount you still owe on the car you're trading in. A $30,000 car with $5,000 down, 7% sales tax, $500 fees and a 6.5% APR over 60 months means borrowing $27,600 at about $540 a month, with roughly $4,800 of interest. Stretching to 72 or 84 months lowers the payment but increases the interest and the time you might owe more than the car is worth. In many US states, sales tax is charged only on the price after the trade-in credit, which saves money; untick the option if yours taxes the full price. Honest limits: UK and European prices usually include VAT, so set tax to zero. PCP, balloon payments, leases and dealer incentives work differently, and your actual APR depends on your credit. Not financial advice. The loan calculator gives a full amortisation schedule, the lease vs buy calculator compares options and the fuel cost calculator estimates running costs.

Frequently asked questions